All physical business assets that require some level of maintenance or repair service are generally purchased with appropriate insurance or warranties. Good monitoring of asset warranties can often reduce the cost of repair and maintenance, as keeping a record of warranties allows us to identify which assets are covered, the period of coverage, the cost of the warranty, etc.
Warranties are coverages that an acquired asset has and through which, in the event of any type of inconvenience regarding its correct operation, the supplier who supplied it will take charge of its repair so that it can be operated again, or if this is not the case, will replace it.
Manufacturers often guarantee an asset, or part of an asset, using specific terms and indicating specific conditions. Such information should be easily accessible to all employees of the organisation who may be responsible for some physical aspect of asset management.
Recommendations for collateral management
For effective corporate asset collateral management, it is necessary to follow some basic recommendations listed below.
- Automate inventory and purchase management: the starting point must be an effective inventory control program for all assets.
- Record warranty data for purchased equipment: such information allows for action on maintenance, identifying warranty repairs and automatically creating claims once the repair has been made.
- Rely on a comprehensive asset management model: MEA information allows customers to better track the repairs they apply for warranty claims and to keep a close watch on service contracts and maintenance plans.
- Warranty monitoring and claims: Users can monitor asset warranties, process warranty claims and take precautions for unlimited warranties against any asset. EAM systems allow customers to better track the repairs they apply for warranty claims. Warranty repairs can be flagged and claims automatically created once the repair has been made.
- Separate the costs associated with warranty management (labor, stock items, services, etc.) to get a detailed picture of the potential claim, track asset warranty information to schedule maintenance, and recover costs
Guarantee management with EAM
Strategic Enterprise Asset Management (EAM) allows detailed records to be kept of maintenance events and help manage the physical aspects of assets. These systems make it possible to compare detailed repair estimates with actual costs and to assess whether a warranty or maintenance contract for the asset can reduce the costs it may incur. They can also access the maintenance history of assets to support decisions on how to address the underlying costs that are increasing the cost of production.
In this way, EAM solutions help organisations to effectively manage orders, purchasing and materials management to maximise budgets and ensure that operations are not disrupted. Inventory control and warranty recovery are two areas that entrepreneurial companies can leverage to increase their return on assets. Warranty information can easily be used to achieve effective maintenance programs and the ability to collect warranty-related costs.
Retain offers a set of modular tools and solutions aimed at improving efficiency and reducing the cost of asset life, maximising the effectiveness of maintenance, increasing warranty recovery by tracking claimable repairs, allowing the system to automatically create a warranty claim once the repair has been made.